In 2021, Wells Fargo sold its entire portfolio of private student loans to Firstmark Services, a division of Nelnet. It no longer offers or services student loans. Here’s what current and prospective borrowers should know.
Wells Fargo sold its private student loan portfolio to Firstmark Services. All loans have been or will be transferred for ongoing servicing.
What To Do
Review loan transfer details if notified. Consider refinancing options if rates could improve.
Background on Wells Fargo Student Loans
Prior to its 2021 exit, Wells Fargo offered private student loans and consolidations loans to qualifying borrowers. Approval and specific loan terms were based on factors like:
- Loan amount requested
- Credit score and history
- Income level
- Employment status
Competitive fixed and variable rates were available, especially for those with good credit. Wells Fargo student loans also offered perks like cosigner release after 36 on-time payments.
How the Loan Transfers Work
The Wells Fargo student loans purchase deal involves transferring existing loans for ongoing administration and servicing by Firstmark Services:
All loans previously held by Wells Fargo move to the ownership of Firstmark Services.
Firstmark also takes over all servicing and account management functions. This includes accepting payments, providing statements, and managing customer service.
What To Do if You Have a Wells Fargo Student Loan
If you have an existing Wells Fargo student loan, here are key actions to take following the transfer:
Look for correspondence from Wells Fargo and Firstmark with details on the specific transition timing for your loans. This will include where/how to send future payments.
Begin Paying Firstmark
Continue making normal payments to Wells Fargo until officially notified. Then switch to directing monthly payments to Firstmark Services.
Confirm Loan Details
Verify your balance, interest rate, monthly payment, and other loan terms remain the same initially after completing the transfer process.
Refinancing Wells Fargo Student Loans
Because Wells Fargo no longer services student loans, you may want to consider refinancing options. Refinancing an existing loan involves taking out a new loan from a different lender and using it to pay off the current debt. It allows an opportunity to potentially improve the interest rate or other terms like the monthly payment.
Today’s low private student loan rates make refinancing a solid option to save money. Rates start below 2% for those with excellent credit scores.
What if You Planned to Get a Wells Fargo Loan?
For those who intend to take out new Wells Fargo student loans in 2021 or beyond, plenty of alternative lenders exist.
Top-rated private student loan companies include:
- College Ave
- Laurel Road
Features to compare across lenders include interest rates, fees, loan terms, eligibility criteria, and borrower benefits like cosigner release.
While no longer in the student lending business, Wells Fargo delivered competitive products helping finance higher education for thousands of borrowers over the years. Existing customers can rest assured their accounts now reside with Firstmark Services, a well-established loan servicer. And refinancing could provide opportunities to save money on interest and accelerate payoff timelines. Those needing new loans can turn to the many reputable private lenders serving student borrowers today.
FAQs: Wells Fargo Exiting Student Loans
Who services Wells Fargo student loans now?
Wells Fargo sold all student loan accounts to Firstmark Services, a division of Nelnet. So Firstmark handles the servicing and management of these loans going forward.
Where do I send my Wells Fargo student loan payments now?
Keep making payments to Wells Fargo until Firstmark officially notifies you that your loan transfer is complete. Then you will begin directing monthly payments to Firstmark instead.
Can I still refinance Wells Fargo student loans?
Yes, you can and may want to consider refinancing your loans with a new private lender. Refinancing allows an opportunity to shop rates from alternative companies and potentially improve your current rate or monthly payment.
In another related article, Wells Fargo Small Business Loans: A Comprehensive Review